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PCPSA reviews rates and affordability; current HAR at 1.56% below 2% benchmark
Summary
Mark Vernon briefed directors on rate-setting authority and affordability: the combined average residential monthly bill is $66.24 and the Household Affordability Ratio (HAR) is about 1.56%, below VDH's 2% benchmark; projected unfunded cost increases (~$20,433) mean the board asked staff to prepare options for April.
Executive Director Mark Vernon reviewed rate authority under Section 15.2-5136 of the Code of Virginia and presented PCPSA's affordability analysis. Vernon reported the current average residential monthly water bill is $36.47 and the average residential monthly sewer bill is $29.77, giving a combined average monthly bill of $66.24 and a calculated HAR of 1.56% (based on Patrick County 2019–2023 median household income of $50,938).
Vernon also noted that, since the last rate increase in FY21, PCPSA projected cost increases through FY26 of $68,170 while projected revenues at current rates are expected to rise by $47,737—leaving an unfunded increase of $20,433. He recommended that any future percentage rate increase be applied uniformly across usage classes and encouraged the board to review attached rate tables and a Rate Revision Comparison Table in preparation for action potentially at the April meeting.
